The Department indicated that most of the reported under expenditure has occurred in various incentive schemes and some of these schemes were still under the investigation or review. The Department also indicated that the under expenditure in the first quarter was inevitable since most of the claims were made in the second quarter of the financial year. The fact that certain incentive schemes were still new in the Department also meant that there was less demand for such schemes hence the under spending. The Department, through its in-year monitoring report was anticipating an under expenditure at the end of the financial year. According to the report of the National Treasury the Department had indicated that it would under- spend by R395 million or 6.4 per cent of the total budget at the end of the financial year. The anticipated under expenditure of R55.r million would emanate from the current payments programme due to vacancies and unspent funds for goods and services. An under expenditure of R334.1 million on transfers and subsidies and R5.7 million on capital payments were also anticipated. This meant that the Department would spend about R5.8 billion or 93.6 per cent at the end of the 2010/11 financial year.